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You are expected to evaluate/examine (AO3) the strengths and limitations of interventionist and market-oriented approaches to achieving economic growth and/or economic development (SL+HL)
Both forms of supply-side policy can be used to boost economic growth and/or economic development.
Interventionist Policies:
Interventionist Policies:
+ Provides infrastructure
+ Provides a social safety net
+ Reduces wealth inequalities
+ Invests in human capital, with education/healthcare
- May increase bureaucracy
- Can lead to corruption
- Has significant opportunity cost, as it requires spending
Market-Based:
Market-Based:
+ Increases efficiency, as the free market allocates
+ Increases competitiveness
+ Makes it easier to invest (removes barriers to trade)
+ Increases consumer choice
- May lead to market failure
- Can increase wealth/income inequalities
- Can result in monopolies, decreasing efficiency
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